Toyota and Isuzu Motors may build a new diesel engine plant together.

Isuzu President Yoshinor Ida told the Nihon Keizai Shimbun that a new plant is a possiblility. The partners would invest around 30 billion Japanese yen in the project.

The move follows news last month that Isuzu Motors and Toyota will collaborate on research and development and production. Toyota will hold a 5.9% stake in the truck and diesel engine specialist. Isuzu will lead a focus on research and development and production of small diesel engines, joint research and development of emission-control technologies and emission-control devices for diesel engines.

Meanwhile, Toyota will lead the focus on environmental technologies, including basic engine and other technologies and technologies related to alternative fuels.

A possible location for the joint diesel engine plant is Tomakomai in Japan. Isuzu already has its own diesel engine plant in the town, and Toyota has a component plant there.